Middle East & Africa Plant-based Food Market Outlook, 2028

The Middle East is becoming a hotspot for plant-based food, with interest in meat and dairy alternatives growing at a fast pace, particularly since the pandemic. Sales of processed meat and dairy products are already relatively low in the region, and with obesity on the rise, plant-based foods are increasingly perceived as healthier options. Awareness of environmental and animal welfare issues is also growing, though it remains fairly low. The growing concerns among the people of the Middle East about the consumption of conventional animal-based food and beverage products and the adoption of vegan diets in the wake of the COVID-19 pandemic due to rising health awareness were expected to drive the plant-based growth of meat and dairy products in the region. The shift in consumer behavior was majorly due to the rising concerns regarding animal welfare, personal health, and sustainability. Therefore, various food and beverage companies were launching plant-based or vegan meat and dairy products in the Middle East and African markets. Additionally, the benefits of cholesterol-free protein, with a meat-like texture, are one of those key factors promoting the growth of plant-based meat and dairy products in the region studied. Several major Middle Eastern food brands are increasing the emphasis on vegan meat and other foods. Globally, plant-based products - and alternatives to meat, in particular - are increasingly developed for mass appeal, not just vegetarians and vegans. The UAE is increasingly vegan-friendly. In 2018, Bareburger locations in Abu Dhabi and Dubai launched the plant-based Beyond Burger. While Applebee’s in Dubai serves vegan B12 burgers made by UK-based brand Moving Mountains. In 2019, Veganity - which first opened in Dubai in 2017 - became the world’s largest plant-based restaurant.

According to the research report, Middle East & Africa Plant-based Food Market Outlook, 2028 the market is anticipated to cross USD 4000 Million market size by 2028. Consumers in the region appreciate these meat substitute products due to animal welfare, environmental and health-related reasons, functional efficacy, and high sustainability claims offered by plant-derived products supporting the plant-based meat and dairy market in the Middle East and Africa. Dairy alternatives hold a broad scope for product development, pulling the significant attention of manufacturers to contribute to the market. As a result, food companies are expanding their productions and increasingly investing in catering to the appeal of novel flavors and taste profiles. For instance, in October 2022, the Silicon Valley-based food tech firm Change Foods announced an agreement with Khalifa Economic Zones Abu Dhabi to build an animal-free dairy plant in the United Arab Emirates. Such developments happening in the region are expected to further boost the market’s growth during the forecast period. On March 7, 2022, United Arab Emirates-based halal food producer Al Islami Foods launched its first plant-based product in response to growing demand for healthier vegan alternatives in the country. In a region where traditional food is heavily dominated by meat, some local players are opting for a hybrid approach to new product development. Healthy Farm, a brand launched by the consumer product division of UAE conglomerate Albatha Holding, makes a chicken, quinoa and kale burger.

Based on the countries, United Arab Emirates is projected to grow with more than 12% CAGR by 2023-28 in Middle East & Africa plant-based food market.

Consumers in the United Arab Emirates consider the adoption of veganism in the country as they are keen on a cleaner lifestyle, healthy habits, and animal rights, fuelling the growth in the meat substitute market in the country due to the clinically proven health benefits of a vegan diet. Additionally, most shops and restaurants offer different vegan and vegetarian products in the United Arab Emirates, making people try those products and eventually aiding them to shift from meat to plant-based foods. Tourism in the country from other parts of the world also contributes to the growth of the country's meat substitute market. The growing demand for vegan protein-based products resulted in the incorporation of more new startup plant-based food companies and the expansion of existing companies in the country. For instance, in January 2021, VBites, the United Kingdom-based vegan food brand, expanded into the Middle East with new listings announced in the United Arab Emirates. The company launched nine items from its 51-strong plant-based products portfolio in 90 stores, Spinney’s outlets throughout the United Arab Emirates, and Waitrose shops in Dubai. Similarly, Kind Lyfe, a new vegan snack startup launched in November 2021 in the United Arab Emirates, is gaining popularity all over the region through its sales in supermarkets and online retail channels. Moreover, the increasing urban population in the country is further propelling the market as it makes the availability of plant-based products easier, and consumers are also provided with innovative flavours and are always well-informed about the latest products.

Based on the product type, plant-based meat and seafood (tofu, Quorn, seitan, fish, tvp, burger patties, tempeh, hot dogs and sausages, meatballs, ground meat, nuggets, crumbles, shreds, crab, shrimp, others) is growing with over 15% CAGR by 2023-28.

The Middle East and Africa region has diverse cultural and religious practices that influence dietary choices. Plant-based meat alternatives provide an opportunity for consumers to adhere to dietary restrictions or preferences, such as vegetarianism or halal diets, while still enjoying familiar flavours and textures. The availability of plant-based meat options that align with cultural and religious requirements has contributed to their growth in the Middle East and Africa market. Also, there is a growing awareness of the health benefits associated with reducing meat consumption and incorporating plant-based options into the diet. Plant-based meat alternatives are often lower in saturated fats, cholesterol, and calories compared to traditional meat products. The Middle East and Africa region's rising interest in health and wellness is driving the demand for plant-based meat as consumers seek healthier alternatives without compromising on taste and texture. Major retailers and foodservice chains are now offering plant-based meat options on their menus, making it easier for consumers to access and try these products. The expansion of distribution networks and partnerships with foodservice providers has played a crucial role in driving the growth of plant-based meat alternatives in the region.
On the other hand, plant-based desserts, including cakes, pastries, custard, pudding, and other sweet treats, are experiencing significant growth in the Middle East and region. The Middle East and Africa region has a diverse population with varying dietary preferences and restrictions. Plant-based desserts cater to individuals following vegetarian, vegan, lactose-free, or dairy-free diets. By offering a range of plant-based dessert options, including those free from animal products, gluten, or other allergens, manufacturers can tap into a broader consumer base and meet the needs of individuals with specific dietary requirements. Also, the influence of Western food culture, particularly in urban areas of the Middle East and Africa region, has contributed to the growth of plant-based desserts. Western-style desserts like cakes, pastries, and custards are increasingly popular among consumers. Plant-based versions of these desserts allow individuals to enjoy the familiar flavours and textures they are accustomed to while adhering to their dietary preferences or ethical considerations.

Based on distribution channel, E-commerce segment is expected to cross USD 700 Million market size by 2028 in Middle East & Africa plant-based food market.

The growth of e-commerce for vegan food in the Middle East and Africa region is driven by convenience, expanded product availability, improved delivery infrastructure, dietary requirements, and a growing awareness of veganism. As more consumers embrace plant-based diets and seek vegan food options, the online marketplace provides a convenient and accessible platform for discovering and purchasing a wide range of vegan food products. The development of robust delivery infrastructure and logistics networks in the Middle East and Africa region has contributed to the growth of e-commerce for vegan food. Delivery services and courier companies are expanding their reach and efficiency, making it easier to deliver vegan food products to consumers' doorsteps in a timely manner. This infrastructure development has increased the reliability and convenience of online vegan food shopping. E-commerce platforms enable retailers and specialty vegan food companies to offer an extensive range of vegan products that may not be readily available in local brick-and-mortar stores. Consumers in the Middle East and Africa region can access a broader selection of vegan food products from both domestic and international brands. E-commerce platforms also facilitate the discovery of niche or artisanal vegan food items that cater to specific dietary preferences or needs. Kibsons (UAE), Greenheart Organic Farms (UAE), The Vegan Kitchen (UAE), Goodness Cart (Saudi Arabia), Vegan Life (Egypt), Vegan Arabia (UAE), Vegan Street (Saudi Arabia), Plant Based Foods (South Africa), Vegan Nation (Egypt) and Vegan Market (South Africa) are some popular e-commerce platforms and online retailers in the Middle East & Africa.

Market Drivers

Halal and Kosher Considerations: The Middle East and Africa region has a significant Muslim population, and halal food requirements are an important consideration for many consumers. The demand for halal-certified plant-based food products is growing, as consumers seek options that meet their religious dietary guidelines. Similarly, kosher-certified plant-based food products cater to the Jewish population in the region. The availability of halal and kosher plant-based options is driving market growth in the Middle East and Africa region. Halal and kosher certifications not only cater to individuals who follow religious dietary restrictions but also appeal to a broader consumer base seeking products that align with their ethical and dietary preferences. Vegan food products that carry halal and kosher certifications offer a wider range of consumers the assurance that the products have been prepared in accordance with their specific dietary needs and values. The Middle East and Africa region has a strong cultural foundation that appreciates plant-based ingredients and dishes. Traditional Middle Eastern and African cuisines often feature plant-based dishes, and the cultural acceptance of these flavours and ingredients helps promote vegan food options.

Online Influencers and Social Media: The influence of social media and online influencers is significant in shaping consumer behaviour and choices. Plant-based influencers, bloggers, and content creators in the Middle East and Africa region are promoting the benefits of plant-based diets, sharing recipes, and showcasing plant-based food options. Their impact on social media platforms is increasing awareness and driving interest in plant-based food products. Influencers often share their personal journeys and experiences with veganism, including the challenges they faced and the positive impact it has had on their lives. Their authentic and relatable content resonates with their audience, as they demonstrate that a vegan lifestyle is achievable and rewarding. By sharing their stories, influencers inspire and motivate individuals to consider and adopt vegan food choices. Also, influencers play a crucial role in promoting and supporting local vegan businesses and start-ups. They feature and showcase products, restaurants, and food establishments that offer vegan options, helping to increase visibility and awareness.

Market Challenges

Meat-Centric Culinary Culture: The Middle East and Africa region has a strong meat-centric culinary culture, with dishes like kebabs, shawarma, and biryani being popular staples. Plant-based alternatives face the challenge of competing with these culturally ingrained meat-based dishes, which can make it difficult for plant-based options to gain widespread acceptance. Overcoming the preference for meat and introducing plant-based alternatives that mimic the flavours and textures of traditional dishes is a key challenge for the Middle East and Africa market. Meat is often associated with being a rich source of protein and essential nutrients. Some individuals may believe that a plant-based diet lacks the necessary nutritional elements found in meat. Overcoming the perception of nutritional deficiencies and highlighting the nutritional benefits of plant-based diets through education and awareness is crucial for changing perceptions and promoting plant-based alternatives.

Traditional Livestock Farming Practices: Livestock farming has deep-rooted cultural and economic significance in the Middle East and Africa region. Traditional livestock farming practices, such as pastoralism and nomadic herding, are prevalent, and animal agriculture contributes to local economies. This can create resistance to the adoption of plant-based diets and plant-based food products, as they are perceived as a threat to livelihoods and cultural practices associated with animal husbandry. The Middle East and Africa region, particularly in rural or less developed areas, may have limited retail infrastructure, with fewer supermarkets or specialty stores that carry a wide range of plant-based products. This can restrict consumer access to plant-based food options, particularly in areas where e-commerce and online shopping are not as prevalent. Expanding retail infrastructure and increasing the availability of plant-based products in local markets are important for market growth.

Market Trends

Focus on Local and Indigenous Ingredients: The MEA region is blessed with a diverse array of indigenous crops and ingredients that are well-suited for plant-based diets. A significant trend in the MEA plant-based food market is the emphasis on utilizing local and regional ingredients in plant-based products. This approach promotes sustainability, supports local farmers and food producers, and preserves the cultural heritage of the region. Consumers in the MEA region appreciate plant-based food options that incorporate local flavours and traditional ingredients. Utilizing local and indigenous ingredients in plant-based food products supports sustainability efforts in the MEA region. Locally sourced ingredients have a lower carbon footprint as they require less transportation and contribute to the conservation of biodiversity. This trend aligns with the growing environmental consciousness among consumers and the desire to reduce the ecological impact of food production. The focus on local and indigenous ingredients contributes to promoting food sovereignty in the MEA region. Food sovereignty emphasizes the rights of communities to have control over their food systems, including the ability to produce and consume culturally appropriate food. Embracing local ingredients empowers local communities, preserves traditional knowledge, and fosters a sense of food autonomy.

Plant-Based Fast Food and Quick-Service Restaurants: The MEA region has a fast-paced lifestyle, and consumers often seek convenient food options that fit their busy schedules. Plant-based fast food and QSRs cater to this demand by offering quick and hassle-free plant-based meals. These establishments provide an alternative to traditional fast food outlets by offering healthier and more sustainable plant-based options. The fast food and quick-service restaurant (QSR) sectors in the MEA region are recognizing the demand for plant-based options. Major fast food chains and QSRs are introducing plant-based burgers, sandwiches, and other menu items to cater to the growing number of consumers seeking plant-based alternatives when dining out. This trend reflects the desire for convenience, taste, and accessibility in plant-based food offerings. Plant-based fast food and QSRs offer a diverse range of menu options that appeal to a wide audience. These establishments are constantly innovating to create plant-based alternatives to popular fast food items such as burgers, sandwiches, wraps, and pizzas. The focus is not only on mimicking the taste and texture of meat-based counterparts but also on introducing unique and creative plant-based offerings that provide variety and culinary excitement for consumers. Green Bar (United Arab Emirates) Veganity (United Arab Emirates), Super Chix (United Arab Emirates), Just Salad (United Arab Emirates), The Salad Jar (United Arab Emirates), Kruszwica (South Africa), Kauai (South Africa), Lekker Vegan (South Africa), The Vegan Kitchen (South Africa) and Vegan Lab (Egypt) are some notable plant-based fast food and quick-service restaurant chains in the Middle East and Africa (MEA) region.

Key Players

The plant-based food market has seen the emergence of several key players who have played a significant role in driving innovation, product development, and market growth. The plant-based food market major player such as the Kellogg Company, Danone S.A., Archer Daniels Midland Company, Blue Diamond Growers, Nestlé S.A., JBS S.A., The Kraft Heinz Company, Unilever plc, General Mills, Inc.,, Impossible Foods Inc, Bob's Red Mill, and others are working on expanding the market demand by investing in research and development activities.

Recent Developments:

• In May 2022, Saudi Dairy and Food Stuff Company launched Saudia oat milk, claiming it is the Kingdom’s first locally produced oat-based milk.
• In February 2021, Danone SA announced its purchase of US-based firm Earth Island, which is a producer of a pioneering plant-based brand named Follow Your Heart. This expansion helped the company (Danone) to expand its product range to meet consumer needs.
• In January 2021, Vbites Food Limited expanded its business in the Middle East with a listing of products that were announced in the United Arab Emirates. Nine products from its 51-strong portfolio of plant-based products have been listed in 90 stores, including Waitrose locations in Dubai and Spinneys stores across the United Arab Emirates.

Considered in this report

• Geography: Middle East & Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Middle East & Africa Plant-based Food with its value and forecast along with its segments
• Country-wise Plant-based Food market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• UAE
• Saudi Arabia
• South Africa

By Product Type

• Plant-based Milk
• Plant-based Meat and Seafood (Tofu, Quorn, Seitan, Fish, TVP, Burger Patties, Tempeh, Hot Dogs and Sausages, Meatballs, Ground Meat, Nuggets, Crumbles, Shreds, Crab, shrimp, Others)
• Plant-based Cheese
• Plant-based Desserts (Cakes, Pastries, Custard, Pudding, etc.)
• Plant-based Ice Cream
• Plant-based Yogurt
• Plant-based Butter
• Plant-based Bars (Protein Bars, Energy Bars, Cereal Bars, Fruit & Nut Bars, etc.)
• Plant-based Bakery Snacks and Confectionery (Biscuit and Cookies, Bread and Rolls, Chocolate, etc.)
• Plant-based Creamer
• Plant Based Mayonnaise and Salad Dressing
• Others

By Distribution Channel

• Hypermarkets and Supermarkets
• Convenience Stores
• E-Commerce
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations and organisations related to the Plant-based Food industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.